Photographer: Akos Stiller/Bloomberg Silver jumped, extending a run of elevated volatility, as an industry body pointed to stronger investment buying and weaker industrial demand in the year ahead. The metal rose as much as 6.8% on Wednesday, about one-third higher than last week’s low. The silver market will be in deficit for a sixth consecutive year, according to a report published by the Silver Institute, as surging investment outweighs wilting demand for jewelry and efforts to curb use in the solar s ...

Core Insights - Silver prices have more than doubled since mid-2025, driven by safe-haven buying, geopolitical tensions, and surging industrial demand from sectors like AI, EV, and solar [3][15] - Historical patterns indicate that silver typically follows gold's breakout, but often experiences larger price movements [3][15] Demand Dynamics - Silver is currently experiencing a "perfect storm" of demand, characterized by euphoric spikes in price [4][15] - The industrial demand surge is attributed to advancements in technology and renewable energy sectors [3][15] Historical Context - Silver has a history of significant price spikes followed by sharp declines, similar to natural gas [6] - Notable historical examples include the Hunt brothers' market cornering in the late 1970s and the commodity bull market in the 2000s, both of which saw dramatic price fluctuations [7][8] Market Indicators - Recent trading activity shows signs of a potential blow-off top, with record trading volume in the SLV ETF reaching $14.3 billion [10][12] - Current silver prices are over 100% above the 200-day moving average, indicating a stretched market [12] - Retail limitations on silver sales, such as Costco's restriction to one bar per customer, suggest heightened demand and market frenzy [12] Conclusion - While silver prices have surged significantly, caution is warranted as indicators suggest the rally may be nearing its peak [15]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting with competent advisors before making any financial decisions, particularly in relation to investments in cryptocurrencies and CFDs [1]. Group 1 - The website provides general news, personal analysis, and opinions, as well as materials from third parties for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as a recommendation or advice for any financial actions, including investments or purchases [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to exercise their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and CFDs, which carry a high risk of losing money [1]. - Users are encouraged to conduct their own research and fully understand the workings and risks of any financial instruments before investing [1]. - The website may feature advertisements and promotional content, and FX Empire may receive compensation from third parties related to such content [1].

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting with competent advisors before making any financial decisions, particularly in relation to investments in cryptocurrencies and CFDs [1]. Group 1 - The website provides general news, personal analysis, and opinions, as well as materials from third parties for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as a recommendation or advice for any financial actions, including investments or purchases [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to exercise their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and CFDs, which carry a high risk of losing money [1]. - Users are encouraged to conduct their own research and fully understand the workings and risks of any financial instruments before investing [1]. - The website may feature advertisements and promotional content, and FX Empire may receive compensation from third parties related to such content [1].

Group 1 - The article provides a market analysis focusing on Gold Spot and Silver Spot prices in US Dollars, as well as the performance of the S&P 500 and iShares Silver Trust [1] Group 2 - The analysis includes current trends and fluctuations in the prices of gold and silver, indicating potential investment opportunities [1] - It highlights the correlation between precious metals and stock market indices, particularly the S&P 500, suggesting a relationship that investors should monitor [1]

Core Viewpoint - The abrdn Physical Silver Shares ETF (SIVR) has reached a 52-week high and has increased by 172.12% from its 52-week low price of $26.19 per share, indicating strong momentum in the silver market [1]. Group 1: ETF Performance - SIVR is designed to track the spot price of silver bullion and charges 30 basis points in annual fees [1]. - The ETF currently holds a Zacks ETF Rank 3 (Hold) with a high-risk outlook, suggesting potential for continued strong performance in the near term [4]. Group 2: Market Drivers - Silver prices are rising due to supply constraints and increasing industrial demand, as silver is essential in modern technology and clean energy solutions [2]. - Expectations of interest rate cuts in 2026 are favorable for silver, as a weakening U.S. dollar can enhance global demand, making silver more affordable for international buyers [3]. Group 3: Future Outlook - SIVR has a positive weighted alpha of 210.74, indicating potential for further price rallies in the near term [4].

Core Insights - Silver emerged as one of the strongest-performing major assets in 2025, significantly outperforming gold and Bitcoin, driven by macroeconomic shifts, industrial demand, and geopolitical pressures that may continue into 2026 [1] Performance Overview - By late December 2025, silver traded near $71 per ounce, reflecting a more than 120% year-to-date increase, while gold rose approximately 60% and Bitcoin ended the year slightly lower after a volatile period [2] - Silver's price started 2025 near $29 per ounce and saw steady growth throughout the year, with accelerated gains in the second half due to widening supply deficits and stronger-than-expected industrial demand [2] Comparative Analysis - Gold also experienced a strong rally, increasing from around $2,800 to above $4,400 per ounce, supported by falling real yields and central bank demand [3] - Silver outperformed gold by a significant margin, consistent with its historical tendency to amplify precious metal cycles [4] - Bitcoin's trajectory was different, peaking at nearly $126,000 in early October before declining to around $87,000 by December, failing to maintain safe-haven inflows during late-year risk-off movements [5] Macroeconomic Factors - Several macroeconomic conditions favored hard assets like silver in 2025, including a shift toward easing monetary policy, with the US Federal Reserve implementing multiple rate cuts, which lowered real yields and weakened the dollar [6] - Ongoing inflation concerns contributed to a favorable environment for tangible assets, particularly those with both monetary and industrial value [6] Industrial Demand - Unlike gold, silver benefits directly from economic expansion, with its dual role as both an investment and an industrial metal proving crucial in 2025 [7] - The rally in silver prices was increasingly supported by physical demand rather than investment flows, with industrial usage accounting for approximately half of total silver consumption, a share that continues to grow [8]

Market Trends - Chinese LNG imports face potential weakness due to disappointing industrial demand and persistently high global prices [1] - Reduced purchases of LNG are anticipated [1]

Commodity Market Trends - China's commodity purchases increased broadly in September [1] - The increase is attributed to buyers stocking up for the usual rise in industrial demand during the autumn months [1]